Taxageddon 2013—Obamacare Medicare Tax

Taxageddon 2013—Obamacare Medicare Tax
Another day, another tax increase scheduled for 1/1/2013. We’ve already discussed the Social Security tax, the individual income tax rates, and briefly touched on estate taxes. Today, we’ll discuss a little more in depth the Medicare Investment Tax. While there are other random things scheduled to happen when Taxageddon comes, this will probably be my ...

Forgiving Debt–Good Deeds are Taxable

Forgiving Debt–Good Deeds are Taxable
Our government taxes gifts, at least any over a certain amount (currently $13,000). Exceptions exist, of course, like between spouses, but the general rule is if you gift, you pay. In a new twist I ran into today, Section 2511(a) includes ‘forgiving debt’ as an indirect gift. This makes sense—it’s essentially the same as giving ...

The Dangers of Casual Sales

The Dangers of Casual Sales
Last time you had a garage sale, did you collect sales tax? If not, you may be breaking the law. Okay, that’s only the case if you live in Colorado, Oklahoma, or Wyoming, which makes up about 3% of the US. Those three states, oddly enough, do not include exceptions for occasional, or casual, sales. ...

Thank you Kansas

Thank you Kansas
It hasn’t been the most fun busy season. It should be over by now, but due to various office issues, we suddenly have no associates with free time, so I’m stuck preparing some state returns. It’s the mindless, data entry part, only marginable enjoyable with some good music. I had one unexpected boon, though: Kansas ...

Warren Buffet and I Make Taxes

Warren Buffet and I Make Taxes
Dear Mr. Buffet, First of all, did people call you “Warren” growing up? It just doesn’t sound like a very appropriate name for a little kid, and I can’t think of any nick names other than “Warney,” which is unlikely to catch on any time soon (like I mentioned in my last post, naming isn’t ...

But There’s no Sales Tax on Amazon

But There's no Sales Tax on Amazon
Sorry to break it to you, but you DO owe sales tax on your online purchases. Well, use tax, actually, but it’s basically the same thing. Amazon, however, doesn’t have to collect the tax, unlike your friendly 5 and Dime down the street (I’m actually not sure what a 5 and Dime is, but old ...

The Effective Rate Debate

I’ve been meaning to write an actual tax blog post for some time, just to try it out. I picked something fun and controversial. Hope you enjoy it. The debt ceiling debate has been about as ubiquitous as car insurance commercials over the past few weeks. Like all good political debates, we’ve had no shortage ...